Research On Regulation Of The Real Estate Presale Founds In China

With the rapid development of market economy in our country. houses. as commodities for selling and buying. have been adopted in the market economy realm for over20years. In the process of housing commoditization. the system of the forward purchasing of commodity houses has gained an irreplaceable position. And the supervision of the funds from pre-sales has become one of the focuses of different parties. However. there is no uniformed legislation to regulate the funds, and the practices adopted are sometimes different, which have caused chaos in China’s real estate market. Based on the problems facing Chinese real estate market, this paper analyzes and studies the supervisory system of the forward purchasing of commodity houses, from the perspective of legal supervision in five chapters.The second chapter of this paper firstly analyzes the background of the supervisory system for the funds from pre-sales. namely the necessity of the system of the forward purchasing of commodity houses. The paper puts emphasis on the definition and the legal nature of funds from pre-sales of commodity houses, which will further define the concept of the supervisory system for the funds from pre-sales. Then the paper demonstrates the importance of the legal supervision of the funds from pre-sales. which was spurred by2010’s "New Policy for the Real Estate Market". From the perspectives of jurisprudence and economic jurisprudence, the third chapter of this paper analyzes the theoretical foundation of China’s establishment of supervisory system for the forward purchasing of commodity houses. This chapter focuses on the restrictions and freedom imposed by the philosophy of law. the repeated games between contract parties and the mechanism of integrity, the analysis of security and sufficiency in the legal regime and the application of the theory of state intervention in the system for the forward purchasing of commodity houses. The fourth chapter of this paper further analyzes the status quo of China’s system for the forward purchasing of commodity houses. Firstly, this paper finds the legislation bases for the supervisory system for the forward purchasing of commodity houses. Secondly. this chapter generalizes the five models that have been in use in China’s current system for the forward purchasing of commodity houses:and finally. this chapter points out three major problems that lie in China’s system for the forward purchasing of commodity houses, namely no uniformed national legislation of the funds from pre-sales. no systemization of the supervision nor is there any legislation for legal responsibilities. The fifth chapter analyzes the abundant experiences of China’s Hong Kong region and America. The focus is the analysis of Hong Kong’s supervisory system in which law firms take part in. The stringency and systematization are worth studying. Another system that is worth studying is the American notary custody system. However. China’s economy now is not ripe enough for this kind of supervisory system, in which a neutral third party will intervene and supervise the parties in the whole course. The mandatory regulation of the market in the American system is worth our attention. Based on the analysis and generalization of the previous chapters, the sixth chapter tries to make use of other region and countries’ experience to regulate China’s system for the forward purchasing of commodity houses and puts forward the paper’s proposal for legislation for the system for the forward purchasing of commodity houses. This chapter puts forward the author’s independent ideas on the regulatory body, supervisory process and the legal responsibilities that the parties involved should bear should they break the rule or contract so as to establish a complete set of system for the forward purchasing of commodity houses.Currently. China’s market economy is not mature enough to cope with the market risks in existence. hence the necessity of enacting a marched system. In order to prevent the disorder of the real estate market and market failure. it is necessary to apply legal methods to regulate the supervisory system for the forward purchasing of commodity houses. Only by perfecting the legal system for the forward purchasing of commodity houses. can we guarantee the order and healthy development of China’s real estate market. It is hoped that this paper may contribute to the perfection of China’s system for the forward purchasing of commodity houses.